What: The retailer, improving on top and bottom lines, raises its full-year guidance ahead of the holidays.

Why it is important: Total revenues for the three-month period ending 30 October jumped nearly 16% to USD 4.36 billion, up from USD 3.78 billion the same time last year. Third-quarter comparable sales rose 14.7%, year-over-year. The company logged USD 243 million in profits as a result, compared with losses of USD 12 million during 2020’s third quarter.

Kohl’s now expects its full 2021 fiscal year revenues to increase in the mid-twenties percentage range, compared with prior estimates of an increase in the low-twenties range.

Categories of growth in the most recent quarter included activewear, which was up 25%, led by national brands such as Adidas, Nike and Under Armour.

The biggest tailwind comes from the newly launched and game changing partnership with Sephora. There are currently about 200 Sephora shops-in-shop in Kohl’s stores and the company anticipates there will be 850 by 2023. This is transforming the business, putting the retailer in the beauty business. The mini Sephora locations are also helping drive customer acquisition. More than 25% of Sephora shoppers are new to Kohl’s. Many of them are younger than existing Kohl’s consumers.

Headwinds include the women’s business as well as continued supply chain disruptions throughout the industry.

Sephora supports growth at Kohl’s – WWD